- Anti-dumping duty
- An additional duty imposed on specific imported goods found to be sold below fair market value, on top of standard Basic Customs Duty. Applied product-by-product, not category-wide.
- AQL (Acceptable Quality Level)
- A statistical standard used in inspection to decide how many units to sample and how many defects are tolerable before a shipment is rejected. AQL 2.5 is common for general consumer goods; tighter levels apply to safety-relevant products.
- B/L (Bill of Lading)
- The document issued by a shipping line as a receipt for cargo and a contract of carriage. Often required to release goods at the destination port.
- BCD (Basic Customs Duty)
- The primary duty charged on imported goods, set by HS code under India's Customs Tariff. See our Landed Cost guide.
- BIS (Bureau of Indian Standards)
- India's national standards body. Mandates registration or certification for a growing list of product categories under Quality Control Orders (QCOs). See our Compliance guide.
- Bonded warehouse
- A secure facility where imported goods can be stored without immediately paying duty, until they're cleared for domestic sale or re-exported.
- Canton Fair
- The China Import and Export Fair, held twice yearly in Guangzhou across three phases. The largest trade fair most Indian importers will ever attend. See our Canton Fair guide.
- CBIC (Central Board of Indirect Taxes and Customs)
- The Indian government body that administers customs duty and the Customs Tariff (the First Schedule that sets duty rates by HS code).
- CBM (Cubic Metre)
- The unit freight is measured in by volume: Length × Width × Height in metres. Used to calculate sea freight charges alongside weight. See our CBM calculator.
- CFR (Cost & Freight)
- An Incoterm where the supplier pays freight to the destination port, but risk transfers to the buyer once goods are loaded on the vessel — insurance is the buyer's responsibility.
- CHA (Customs House Agent)
- A licensed professional who files customs documentation and manages clearance on an importer's behalf. Required for most commercial import clearance in India.
- CIF (Cost, Insurance & Freight)
- An Incoterm where the supplier pays freight and insurance to the destination port. Convenient, but the buyer can't audit the freight cost embedded in the price.
- Consignee
- The party named to receive a shipment — usually the importer, or their CHA acting on their behalf.
- DDP (Delivered Duty Paid)
- An Incoterm where the supplier handles everything — freight, insurance, duty, and delivery to the buyer's door — for one all-inclusive price.
- Demurrage
- A charge levied when cargo isn't cleared or picked up from port within the free storage period — the cost of a delayed clearance, and it accrues daily.
- DGFT (Directorate General of Foreign Trade)
- The Indian government body that issues the Importer Exporter Code (IEC) and administers India's foreign trade policy.
- Escrow / Trade Assurance
- A payment-protection mechanism (often built into sourcing platforms) that holds payment until agreed conditions are met, giving buyers recourse if a supplier doesn't deliver as promised.
- EXW (Ex Works)
- An Incoterm where the supplier's only obligation is making goods available at their factory. The buyer arranges and pays for everything from that point — export clearance included.
- FCL (Full Container Load)
- A shipment large enough to fill an entire container on its own, as opposed to LCL (shared container space).
- FOB (Free On Board)
- An Incoterm where the supplier delivers goods loaded onto the vessel; the buyer takes over freight, insurance, and risk from that point. Generally the recommended default once past a first shipment.
- Freight forwarder
- A company that arranges shipping on an importer's behalf — booking cargo space, consolidating LCL shipments, and coordinating the physical movement of goods.
- FSSAI (Food Safety and Standards Authority of India)
- The regulator governing food products and food-contact materials/packaging. Licensing applies even to non-edible items that touch food.
- GST (Goods and Services Tax)
- India's indirect tax system. On imports, applied as IGST at the point of customs clearance.
- HS Code (Harmonized System Code)
- The internationally standardised product classification code that determines your customs duty rate and which regulatory requirements apply. See our HS Code reference.
- ICEGATE
- India's official Customs EDI Gateway — the government portal for electronic customs filing, and home to the official Customs Duty Calculator.
- IEC (Importer Exporter Code)
- A one-time registration issued by DGFT, required for any commercial import or export shipment into or out of India.
- IGST (Integrated GST)
- The GST charged on imports at the point of customs clearance, calculated on CIF value plus Basic Customs Duty — not on product cost alone.
- Incoterms
- A standardised set of trade terms (EXW, FOB, CIF, DDP, and others) defining who pays for what and when risk transfers between buyer and seller. See our Incoterms Cheat Sheet.
- L/C (Letter of Credit)
- A bank-issued payment guarantee that releases funds to the supplier only once specified conditions (like shipping documents) are met — shifts payment risk toward the banks involved.
- LCL (Less than Container Load)
- A shipment too small to fill a container alone, consolidated with other importers' cargo on the same route. The default choice for most first orders.
- Legal Metrology
- The Indian regulatory regime governing pre-packaged commodity labelling — net quantity, MRP, manufacturer details, and country of origin.
- MOQ (Minimum Order Quantity)
- The smallest quantity a supplier will accept for an order. Varies hugely by category and is often more negotiable than first quoted.
- MRP (Maximum Retail Price)
- The maximum price a product can be sold at in India, which must be declared on packaging under Legal Metrology rules.
- Nhava Sheva (JNPT)
- India's largest container port, near Mumbai — the most common entry point for containerised imports on the west coast.
- PO (Purchase Order)
- The written document confirming price, spec, quantity, and terms agreed with a supplier. See our PO Template.
- PSI (Pre-Shipment Inspection)
- A quality check performed on goods before they're loaded for shipment, comparing them against the approved sample and spec. See our PSI Checklist.
- QCO (Quality Control Order)
- The mechanism India uses to mandate BIS registration for specific product categories — the list is updated periodically, so a category unregulated last year can require registration this year.
- Revenue ton / Freight ton
- The unit sea freight is billed on — the greater of a shipment's volume (in CBM) and its weight (in tonnes), roughly at a 1:1 ratio.
- SOHO exporter
- A small trading company (often "Small Office/Home Office") that resells factory production rather than manufacturing itself. Not inherently a problem, but changes pricing and accountability.
- T/T (Telegraphic Transfer)
- A standard bank wire transfer — the most common payment method for supplier deposits and balances.
- Trading company
- A supplier that sells goods manufactured by other factories rather than producing in-house. See our Supplier Verification guide.
- Volumetric weight
- A standardised conversion (Length × Width × Height ÷ 6000 for air freight) that approximates how much space a light, bulky item takes up relative to a dense one, used to calculate air freight charges.
- WPC (Wireless Planning & Coordination)
- The Indian regulator governing equipment type approval for anything that transmits on radio frequency — Bluetooth, Wi-Fi, and similar devices.
- Yiwu
- A city in Zhejiang province, China, home to the world's largest small-commodities wholesale market and the Yiwu Fair. See our Canton Fair guide.
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